I was a P5 and then displaced in May'24. Mid year review was inconsistently meets (no brainer as I was already displaced). I am rehired as a P4 now.
Any chance I will get any Bonus this year? or is it lost cause?
7 replies (most recent on top)
Interesting….if your offer letter did not have a target tvc amount (some do, some don’t….those that do are usually higher level roles), then yes, it will be based on prior years’ bonus with the factors I described before taken into consideration.
Thank you @1dfc+1tVX0sMC (HR)... I appreciate your time and insights.. I read your detailed response and I think I understand now what to expect, the only thing that is lingering is what is the TVC for my role.. because this is the only verbiage i have in my offer letter on this subject,..
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You will be eligible for annual variable compensation under the Wells Fargo Bonus Plan (20731) (the “Bonus Plan”) based on the successful completion of performance goals and the terms and conditions of the Bonus Plan. You will play a part in setting the applicable performance goals once you start.
Variable compensation under the Bonus plan is discretionary in nature and will be determined in accordance with the terms of the applicable Bonus Plan. Variable compensation may be paid in a combination of short-term cash and long-term awards (in the form of cash or equity), at the discretion of the Human Resources Committee/Plan Administrator (as defined in the Bonus Plan), and as required by applicable law, regulation or guidance. Cash incentives awarded under the Bonus Plan are generally paid in February after completion of the performance year in accordance with the terms and conditions of the plan. Equity awards and long-term cash awards are subject to the terms and conditions of the Company’s long-term equity incentive plan and long-term cash incentive plan, respectively.
The determination and payment of bonus compensation are also subject to the conditions and restrictions imposed under applicable laws, rules and regulations. Your rights to, or receipt of, compensation pursuant to this offer may be limited, modified, cancelled or recovered to ensure compliance with all such applicable laws, rules, regulations and guidance that may be issued there under.
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OP was in 60 day notice. They did not "technically leave and come back" - you are an employee of the firm during that time, and the company has determined whether they work or not during that period.
OP has 12 months of service. the only things relevant here are year end rating, salary and grade level. Lower grade level, even if hired back at same salary as prior, will mean lower total compensation - so lower bonus.
OP, target bonus should be in your offer letter.
I’m the one who provided the detailed response and not a problem at all, happy to help. Sometimes the inner workings of HR can be hard to figure out when you’re not on the inside of it……but, I do need to add one more thing. Because I didn’t catch before that you were hired back one level lower. So that’s going to factor in as well. Just wanted to let you know that so you could prepare. Because now you have 3 factors to be considered in relation to your prior years’ bonus. it sounds like approx. 2 months out of 12 not working, plus a decrease in level, plus possibly a PM rating consideration unless it comes back up to a “meets” at year-end. And I promise, no judgement here on the inconsistently meets since I also know how the distribution is done for ratings and even someone who is amazing has to have a lower rating if they are about to be let go OR may not be their manager’s favorite. But since you were hired back in a different role, I have a question……you likely received a TVC (total variable compensation) “target” if you will in your offer letter. For example, for those who were consistently with the bank for the entire year, TVC is based on your prior years’ TVC with consideration for factors such as promotions, demotions, performance rating increase/decrease/same, etc. but since you technically “left”‘and came back, when you were hired back, there should have been an official offer letter with your TVC terms (target amount). If that is the case, then this year will NOT be based on last years’ TVC amount and instead, your quoted amount in your offer letter will be your starting point for those considerations to be put up against.
@utl+1tVX0sMC Thank you so much for the detailed response. I appreciate it.
I was hired within my notice period so within the 60 days...
2022 rating - Exceeds
2023 rating - Meets
2024 (mid year ) - inconsistently meets
displaced in 5/28/24.
re-hired on 7/26 and started on 8/5/24.
Thank you for helping with this.
I am in the Total Rewards space within HR. You will still be eligible for the bonus (according to the WF bonus plan rules). It is pretty much guaranteed to be lower than the prior year though (if your new manager follows guidance put out for decision making in terms of the bonus decisioning or writes up a heck of a justification for why they didn't) - for example, if you were actively working from Jan - May, then that's 5 months already. You didn't mention what month you were hired back, but since it's only August, sounds like you only had a break in service of maybe 3 months), so by the end of the year, you will have had a total of at least 9 months of performance and you were hired back before the date the eligibility rules in the plan say you're not eligible. They will still base this year's bonus on the bonus you had last year and then there will be (or should be per decisioning guidance) consideration for the 3 months you did not work (so a decrease from last year's bonus) and then also will consider your performance rating (not sure what it will be a year-end, but you said needs improvement for midyear..........so if this is what you end up with at year-end and it's lower than what you had as a rating the year before, then they will not only consider a decrease from prior year's bonus for the 3 months you were not here, but also consider a decrease due to the performance rating......assuming last year was meets - it it was previously needs improvement last year too, then it would not be considered for a cut to last years' bonus since the rating stayed the same and would only factor in the months you weren't here). Now, all that being said, managers have discretion, so my assumption is that all things being equal (such as the budgeted amount they are given for bonus and if you come out with a meets expectations by year-end), then you could reasonably hope for 75% of your last year's bonus amount (9 months working/12 months total). But then go down from there if you ends up with a NI overall for year-end this year and you were a meets this year (usually around a 10-20% decrease from prior year). You were hired back within 6 months too from the sounds of it, so your tenure will remain for benefits (such as disability plans, PTO accrual, etc.) purposes, so at least there's that. You actually can find the bonus guidance under the manager center/Service Now articles for managers - it's open to anyone to see. Just search for it in Teamworks.
You already have a topic for this. Why are you posting another one? If you accepted P4 offer by now, ask your manager this question.